Isn't this a blow to Robin Cook's ethical foreign policy?Absolutely. The foreign secretary has fought hard for parliamentary time for the arms bill, backed by the trade and industry secretary, Stephen Byers, and by the defence secretary, Geoff Hoon. But as the Queen's speech is almost the last before the general election, Labour is concentrating on health, education and crime. Cleaning up the arms trade is not seen as a vote-winner.

What would have been in the bill?The arms bill, which has already been drafted by the Department of Trade and Industry, would have introduced tighter export controls on arms exports. A white paper on strategic export controls in 1998 proposed "to control the involvement of persons in the UK or UK persons abroad in trafficking and brokering in arms and other controlled goods to any country subject to an embargo". Those breaking the proposed law would be subject to criminal charges.

What is Labour's policy on arms sales?"Labour will not permit the sale of arms to regimes that might use them for internal repression or international aggression," the party's manifesto promised before its election in 1997. In government, say critics, it has followed a subsequent manifesto pledge more closely: "We support a strong UK defence industry, which is a strategic part of our industrial base as well as our defence effort."

How important are arms sales to Britain?The sale of arms to foreign countries is big business - and Britain is the second biggest exporter of arms in the world. The latest annual report on British weapons sales records the granting of more than 10,000 export licences in 1998 to a number of countries, including Argentina, China, Colombia, India, Mozambique, Pakistan, Sri Lanka and Zimbabwe.

What has Mr Cook said about arms sales?Mr Cook, who inaugurated an "ethical foreign policy" one month into office, last year reaffirmed the importance of ethical considerations when selling arms. He said that the government "will not issue an export licence if there is a clearly identifiable risk that the proposed export might be used for internal repression" and promised to publish an annual report detailing arms export applications.

But the tension between Labour's two manifesto promises has continued, as demonstrated by rows over the sale of arms to Indonesia and by the issuing of arms export licences to Pakistan.

How are British-made weapons sold to other countries?Licences to export "strategic goods" are issued by the government's export control agency, which is part of the Department of Trade and Industry. Businesses wanting to export their products fill in a form (they can even do it online). The DTI circulates relevant licence applications to other ministries, such as the Foreign Office and the Department for International Development, before approval is given.

A raft of regulations and guidance notes for exporters restricts the sale of arms or other goods which could be used to make weapons, to regimes embroiled in conflict.

What about export credit guarantees?The government's export credit guarantee department (ECGD) operates as insurance for British exporters involved in risky export projects. It guarantees that if a foreign country defaults on paying for British goods then the government will recompense the exporter. Last year, more than 50% of ECGD cover supported arms sales.